From the smallest enterprise to the largest multinational, telecom applications that manage communication, underwrite commerce, and fuel supply chains are the lifeline for businesses today. Starting from the internet to plain old email, messaging, and telecommunications with stakeholders, to advance networking systems that manage global operations, the graph of telecom costs has been on a constant upward trend for years, perhaps decades now. There are reports of companies losing anywhere from 12 to 20% of their telecom budgets due to billing errors and inefficiencies. This presents an unprecedented, often overlooked, opportunity for cost optimization via strategic telecom expense management solutions (TEMS).
Envision the ‘perfect storm’ of escalating telecom expenses that enterprises find themselves in. Let’s start with the 50K foot view: the global telecom expense management market, valued at $4.24 billion in 2024, is projected to reach $9.64 billion by 2030 — in a clear indicator of the growing complexity enterprises face in managing their communication costs. The need for systematic cost control has never been more urgent: up to 85% of technology invoices contain errors, and businesses are spending 4% more on telecommunications year-on-year.
network inventory management systems to the fore
Jumping into the solution space, at the heart of effective cost optimization lies a robust network inventory management system: a system that provides complete visibility into the organization's telecom infrastructure. Modern enterprises often operate across multiple locations and struggle with sprawling networks that include mobile plans, internet services, cloud storage, and communication systems including Internet of Things (IoT) networks, as well as legacy systems. Analysts have noted that all of these systems are prone to billing errors and unused services.
Network loads can come from multiple sources and need to be examined on a department-by-department basis. For example, network sensors monitoring inventories need to be analysed for optimal performance. Towards this end, advanced inventory management platforms that leverage AI-driven forecasting models to analyze historical and real-time data from network sensors help business leaders optimize stock levels and reduce wastage. Such systems create a single source of truth that consolidates logical, physical, and virtual network elements, eliminating the data silos that could be contributing to telecom cost overruns.
transforming telecom process management through automation
To keep pace with the dizzying array of apps and network systems and to handle them optimally, it is necessary to evolve telecom process management from reactive cost control to proactive optimization.
The emergence of next gen communication technologies presents both opportunities and challenges for cost management. As companies increasingly adopt softphones, Session Initiation Protocol (SIP) trunking, and unified communications platforms, they must balance innovation with fiscal responsibility. In addition, modern contact center solutions can eliminate the expense and complexity of managing multiple separate systems, while providing companies with advanced features like AI-powered call routing and real-time analytics.
The transition to cloud-based communication services also offers significant cost advantages, particularly for those businesses with remote workforces. Pay-as-you-grow telecom providers provide precise resource allocation, mitigating overcharges while maintaining the ability to scale quickly when needed. It is important to note that without proper management, these flexible solutions can lead to sprawl and unexpected costs.
building a framework for sustainable cost optimization
Successful telecom expense management requires a framework that encompasses the triad of technology, processes, and governance. Here are some key pieces of the framework that businesses must plan for and implement:
- Begin with a thorough audit of the current telecom estate, including all fixed lines, mobile devices, cloud services, and IT infrastructure. This can help leaders identify redundant services, billing errors, and optimization opportunities.
- Build a framework that tracks Key Performance Indicators (KPIs). For telecom, it should include cost per asset, utilization rates, and inventory turnover. Companies that are able to achieve significant improvements typically leverage data analytics to track KPIs. Regular monitoring and reporting ensure that cost savings are sustained over time.
- Digital transformation, integration of automation, and advanced asset management practices are key drivers for improved efficiency and cost savings in telecom environments.
- Consider modernization and unification of telecom management solutions such as Operational Support System (OSS)/Business Support System (BSS). These can further streamline operations, and help online commerce operators maintain or lower average revenue per user (ARPU).
- Consider investing in a TEMS that can help track key KPIs, and optimize spends. These solutions automate critical processes including invoice management, contract oversight, and usage optimization. A well-designed TEM solution must address three vital areas:
- Usage management, including areas such as service usage management, corporate policy adherence, usage compliance, and more;
- Asset management, including product/service catalogue management, service provisioning management etc.;
- Expense management, including optimizing client spends, carrier invoice audits, and carrier contract management.
The implementation of such robust TEM strategies should also address cybersecurity and compliance requirements. With cybersecurity becoming increasingly critical for business sustenance and growth, telecom expense management providers must demonstrate strong security credentials to maintain enterprise trust.
looking ahead for TEM
Besides the steps outlined above, companies planning to optimize their telecom expenses can focus on consolidating vendor relationships to leverage economies of scale, and establishing clear policies for mobile device management and cloud service usage for further cost optimizations.
There is an increasing recognition that systematic cost control in telecom expenses is essential for business growth. The right combination of technology, processes, and governance can help organizations transform their telecom expenses from a necessary cost into an optimized advantage, freeing valuable resources for innovation and growth.
how Infosys can help
Backed by decades of experience in the sector and with a deep understanding of the drivers of telecommunications expenses, Infosys has developed a robust Cloud and Telecom Expense Management Solution (CTEM). Offered to global customers in a managed service model, CTEMS enables enterprises to overcome key challenges such as limited visibility into various telecom spends; complex and multifaceted cloud pricing; vendor errors; and to tackle inventory management issues.
